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RELEASE 12 Upgrade Considerations by Product (FINANCIALS

Applications Release: Author: 12

Financials Product Development

Creation Date: January 22, 2009 Last Updated: File URL: Draft / Version: v6.0 Status: Final March 8, 2010

Table of Contents
Table of Contents ...............................................................................................................2 Introduction ........................................................................................................................3 Oracle Advanced Collections ............................................................................................4 Oracle Advanced Global Intercompany Systems ...........................................................6 Oracle Assets ....................................................................................................................10 Oracle Cash Management ...............................................................................................13 Oracle General Ledger ....................................................................................................16 Oracle Legal Entity Configurator ..................................................................................21 Oracle Payables ................................................................................................................24 Oracle Payments ..............................................................................................................30 Oracle Receivables ...........................................................................................................34 Oracle Subledger Accounting .........................................................................................39 Oracle E-Business Tax.....................................................................................................43


This document is a supplement written by professionals in Oracle’s Product Development organization that provides product level considerations to help you understand the issues that your project team should consider when upgrading to E-Business Suite Release 12. It describes the significant new features available in Release 12 and then gives process changes, configuration changes and considerations as relevant for each product. It should be used in conjunction with the published product specific user and implementation guides for Release 12 when planning your upgrade. Prior to reviewing this document, the reader is advised to be familiar with the following Release 12 documentation: Oracle Financials Concepts Guide Oracle Financials Implementation Guide Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12.


Oracle Advanced Collections
Release 12 of Oracle Advanced Collections extends transactional and customer data in collection management processes within and across operating units (OUs). New MultiOrg Access Control security profiles manage each collector’s access to operating units to which they are assigned. This provides them with the visibility to customer data and balances within or across OUs on their collector work list and specific screens for a more complete understanding of each customer’s collections situation. Other new features in release 12 Oracle Advanced Collections include: • • •
New Implementation Checklist and Setup Screens

Improved Payment Processing and Customer Funds Capture through integration with Oracle Payments Use of Oracle Territory Management to Define Collections Territory Hierarchies

Finally, the collections workbench in Oracle Receivables has been replaced with functionality from Oracle Advanced Collections. Details on the collections features available in Oracle Receivables and Oracle Advanced Collections are provided in Oracle MetaLink Note 389443.1. Planning Considerations If you have used the Collections Workbench in Oracle Receivables you must upgrade to either Oracle Advanced Collections or the new functionality in Oracle Receivables. Oracle Advanced Collections provides the flexibility and high degree of configurability required by enterprise collections agents and managers responsible for managing delinquent customers and collections-related issues. It includes configurable scoring and strategy management tools, configurable customer metrics, later-stage collections tracking capability, and is directly integrated to a number of other Oracle EBS products including Oracle Territory Manager, Oracle Trade Management, Oracle Leasing and Oracle Loans. The collections functionality available in Oracle Receivables is intended for AR clerks who occasionally perform collections activities. Receivables users who have not purchased a license for Oracle Advanced Collections are not authorized to use the full feature set of this product. Therefore, your planning team should consider the long-term operational requirements of your collections group and upgrade to the appropriate collections management capability that best fits those requirements.


See Oracle Advanced Collections Implementation Guide and Oracle Advanced Collections User Guide for more information. Once you go live. 5 . collections territories can be created in Oracle Territory Manager to facilitate and manage customer assignment and customer-related work assignment. • Based on MOAC security. strategies and work items. • Aging-based dunning plans in R12 (for either Advanced Collections or Receivables users) include: o Configurable dunning letter templates using Oracle BI Publisher o Output as email. • New collections scoring models and customer metrics in Oracle Advanced Collections are best configured by qualified DBAs.Process Change • Pay heed to the order and frequency in which the concurrent programs that automate the collections processes are run. Highest level for these are still ‘Customer’ • Dunning plan capability is available for both Advanced Collections and Receivables users. your production collections system settings can be easily modified with the Setup Tool when changes are needed. and metrics) in pre-production phases of your upgrade. Configurable collections strategy management (which also supports dunning activities) is available in Oracle Advanced Collections. • Customer call activity created in Oracle Receivables prior to upgrading to Release 12 can be viewed from the Collections History tab by selecting “Receivables Calls” from the “Type” List of Values. fax or print o Optional dunning calls assigned to collector for follow up Considerations • Collections scoring and collections strategies are not extended to OU level. • Review and use the pre-configured elements (correspondence templates. collections agents will be able to see across operating units and will need to consider this additional information as they review and work with customer accounts. New scoring and metrics are usually created during your upgrade project. Then add or adjust those elements as needed. • For collections organizations where collectors or collector groups are responsible for managing specific customers. prior to going live with the module. Configuration Change • Start by using the new Collections Implementation Setup tool to create preproduction collections systems for conference room pilots and testing. For instance. scoring models. some organizations run their scoring or dunning processes in synch with their billing cycles while others run them more frequently.

Process Change • Accounting Setup Manager in Release 12 has a separate setup screen for Intercompany / Intracompany accounts. Intercompany Balancing uses the same single set of intercompany accounts and rules for consistent accounting treatment throughout Financials. replacing the Global Intercompany System in earlier releases. and also when intercompany transactions occur in Oracle General Ledger and Oracle Subledger Accounting. • Intercompany balancing supports separate Intercompany Payables and Intercompany Receivables accounts rather than a single intercompany due to/due from account. • Release 12 supports legal entity integration with intercompany balancing rules for intercompany accounts when two legal entities trade. 6 . The key components of the Advanced Global Intercompany System are: • Intercompany Balancing • Manual Intercompany Transactions • Intercompany Invoicing • Intercompany Reconciliation Intercompany Balancing Overview: Intercompany Balancing calculates intercompany accounting when transactions are entered directly in the Advanced Global Intercompany system. and you can then use R12 functionality to: • Define all intercompany accounting definitions centrally. It allows companies to streamline intercompany processing and facilitates intercompany reconciliation. GIS data is upgraded to AGIS. During the R12 upgrade. • Support true legal entity for intercompany transactions between legal entities. Legal entity configuration is not needed for intracompany balancing between pairs of balancing segment values within the same legal entity. • Maintain separate intracompany accounting for transactions between balancing segments in the same legal entity.Oracle Advanced Global Intercompany Systems Oracle Advanced Global Intercompany Systems is a new product in Release 12. • Track trading partners in a separate optional intercompany segment.

In some cases the automatic upgrade may not have been able to identify one and only one legal entity to associate to an intercompany organization. Security grants are created for the users based on the subsidiaries assigned to the responsibilities that each user was assigned.• You can create an optional intercompany segment in your chart of accounts structure. and you can then use R12 functionality to: • Create Intercompany Batches for transactions to multiple recipients (no restriction on COA. It will automatically be populated with the balancing segment value of the trading partner to provide more detail for reporting and reconciliation. • Optionally create intercompany invoices between subsidiaries automatically • Use Oracle Approvals Manager for intercompany transaction approvals. GIS subsidiaries will be converted to intercompany organizations. with optional proration of amounts across recipients. 7 . • Grant user access to multiple subsidiaries from a single responsibility. A user may be given access to many different intercompany trading partners regardless of the responsibility used to log in. Auto-Accounting rules in GIS are not upgraded. GIS data is upgraded to AGIS. • The R12 Grant Based Security Model maps intercompany organizations to users instead of responsibilities. currency. one for one. and specify them as intercompany organizations. • Maintain intercompany periods to control timing of transactions (eg during period close) and close intercompany periods by transaction type. As part of the upgrade. During the R12 upgrade. calendar). • To use intercompany accounting rules. Configuration Change • The R12 upgrade converts intercompany accounts created in GIS into intracompany balancing accounts and rules. and need to be set up as Account Derivation Rules and compiled with the Transaction Account Builder in Subledger Accounting. Considerations • See Oracle Advanced Global Intercompany System Release 12 Roadmap Document • See Advanced Global Intercompany System White Paper Manual Intercompany Transactions Overview The Manual Intercompany Transaction window facilitates intercompany transaction processing between different legal entities under one or more ledgers. In that case the organization will be inactive and must be updated with the correct legal entity before it can be used in transactions. you need to setup legal entities for transacting subsidiaries. map them either to ledgers or balancing segment values. You need to verify post-upgrade that the correct legal entity has been assigned to the intercompany organization so that it can be used.

8 . Considerations • See also configuration changes / considerations for Intercompany Balancing – these apply to all intercompany setup (eg setting up legal entities and mapping them to intercompany organizations. Configuration Change • Setup and assign operating units to ledgers (as part of Accounting Setup Manager) in order to use intercompany invoicing within the subledgers. intercompany function security and data access). • All GIS new and completed transactions are upgraded as AGIS transaction batches. Process Change • Create intercompany invoices automatically where statutory or business practices require them. Intercompany Invoicing Overview Advanced Global Intercompany System interacts with the subledgers to facilitate creation of a physical invoice for an intercompany transaction in both Receivables and Payables. the Allow Invoicing option is set to Not Required. • Setup intercompany invoicing options. creating intercompany accounts and rules. Release 12 highlights for Intercompany Invoicing: • Intercompany uses Oracle Receivables to produce invoices for the initiator. you should manually select the Allow Invoicing check box for transaction types where invoicing is required. the invoice number is then automatically used to create a consistent mirror-image invoice in Oracle Payables. When GIS transaction types are upgraded. you should manually select the Allow Invoicing check box for transaction types where invoicing is required. Configuration Change • Approvals Manager setup • Optionally create intercompany calendar / periods to control timing of intercompany transaction entry. the Allow Invoicing option is set to Not Required. In order to take advantage of the new invoicing feature in AGIS. for each GIS transaction a batch is created. • GIS transaction types are upgraded to the new intercompany system transaction types. In order to take advantage of the new invoicing feature in AGIS. Generally. Once the Receivables transaction is completed.Process Change • New workbench for entering manual intercompany transaction batches. When GIS transaction types are upgraded.

• Creation of additional customer / supplier records and mapping to intercompany organizations is not done automatically as part of the upgrade.• • Create additional AR customers and AP suppliers to represent your company’s subsidiary legal entities. Intercompany Reconciliation Overview Intercompany provides reconciliation tools to sort out any discrepancies in accounting balances between the intercompany organizations. not for intercompany journal entries entered directly in GL). Map the intercompany organizations that are trading partners to AP Suppliers and AR Customers in TCA.e. Process Change • Need to run data extract program to populate XML data before using the intercompany reconciliation report. • BI Publisher technology for reconciliation reporting: the layout is fully customizable and can be downloaded to desktop tools (eg Excel or Word) for further analysis. Configuration Change • Optional – customize BI Publisher report layouts. • Optionally download report output to Excel for additional analysis. Considerations • Intercompany invoices are only created for manual intercompany transactions (i. Release 12 highlights for Intercompany Reconciliation. 9 . See Oracle Advanced Global Intercompany User Guide for more information. • View intercompany out-of-balance accounts and drill down to details of the subledger accounting and documents.

asset category and other required fields to complete the preparation of mass addition lines automatically. resulting in a faster period close. depreciation method. which is the common accounting platform for all E-Business Suite sub ledgers. o It enables you to comply with multiple legislative. • Subledger Accounting(SLA) Architecture and Inquiries o Oracle Assets is fully integrated with SLA. rather than accepting default values from the asset category. Mass 10 .Oracle Assets In release 12. Flexible Reporting using XML Publisher Enhanced Functionality for Energy Industry • • • • • Process Change • Prepare Mass Additions process provided in Release 12 automatically populates all the required information for mass additions lines. o No longer required to run depreciation rollback program manually. Oracle Assets has introduced several enhancements to improve the efficiency of key Assets processes like mass additions and period end close. Enhanced Mass Additions for Legacy Conversions: o Populate depreciation attributes directly in the FA Mass Additions interface table or via? Web ADI (application desktop integrator). Automatic Preparation of Mass Additions o Default rules and public APIs can be used to populate expense account. bonus rule ceiling name. depreciation limit are some of the attributes that have been added to the interface table in Release 12. industry or geography requirements concurrently in a single instance through configurable rules. o Asset life. This means complete automation of legacy conversions. prorate convention. Automatic Depreciation Rollback o Depreciation is rolled back automatically when any transaction is performed on an asset if the period has not yet been closed. o Could significantly reduce the overhead associated with manual preparation of mass addition lines. o Executed only on select assets as required and not on the entire asset book.

o If the default rules do not satisfy your requirements. Please note that the pre-seeded account derivation definitions have been provided for Assets. In summary. o Complete the Accounting Setup flow in Oracle General Ledger. You can use the seeded account derivation definitions or modify them as required. Accounting for current period depreciation will be upgraded only if depreciation has already run for the period.• • • • • additions data may be optionally verified before posting the mass additions lines. the key setup steps are: o Compile the Application Accounting Definition in SLA. During upgrade. For example. o You can use default rules provided by Oracle where the expense account is derived from the clearing account by replacing the natural account segment from the asset category. o In addition. and the period remains open. The Create Deferred Depreciation Journal Entries program is now obsolete. After the upgrade. you can create custom logic coded in a public API to pre-populate these values. transactions in the current fiscal year in Assets books will have their accounting lines migrated to the Subledger Accounting model. The Account Drill Down report has been replaced the Account Analysis report. however. The Create Journal Entries and Rollback Journal Entries programs are now obsolete. you can run the SLA post-upgrade process to update accounting for past transaction data as needed. default rules populate the asset category based on the clearing account from the asset category setup (if there is a one to one match). New SLA Accounting report and online account inquiry provided. Users now need to run Calculate Deferred Depreciation followed by Create Accounting. accounting records were not created until after depreciation had run. Prior to Release12. backdated additions. these records would appear in the Transaction History form for additions. backdated transfers and retirements. if you added an asset and went to the Transaction History form. Configuration Change • New configurable rules for automatic preparation of mass additions. • Generic Subledger Accounting Architecture configuration has been discussed in a separate section of this document. Create Journal Entries has been replaced by Create Accounting. 11 . Post upgrade. you would not see any addition accounting lines if depreciation had not been run.

theft. These accounting rules can be configured in SLA without complex customizations on your part. 12 . etc). sale. For instance. If you have been using the same clearing account across different categories. Oracle continues to support Account Generator functionality for existing asset books. However. some of our customers have requirements where the retirement account is different based upon the type of retirement (missing. the common SLA platform provides many opportunities to implement complex accounting rules without customizations.Considerations • You may have to look carefully at the clearing account in your category setups if you are planning to use default rules for automatic preparation of mass addition lines. • In Release 12. the default rules will not work effectively. See Oracle Assets User Guide for more information.

Oracle Cash Management Oracle Cash Management is an enterprise-wide solution for managing liquidity and controlling cash. Oracle Cash Management starts leveraging several architectural cross-product features such as Multi-Org Access Control and Subledger Accounting. is done differently as described below. When creating new bank accounts. Oracle Receivables. Oracle Payroll. Oracle Receivables. • Bank account reconciliation parameters are now defined at the bank account level. • Privileges to maintain bank accounts are granted to a user role by legal entity in the Oracle User Management security wizard. Oracle Payroll. Process Change • Internal bank account usage in Oracle Payables. Oracle Treasury and Oracle Cash Management does not change in Release 12. Windows related to internal bank account maintenance in Oracle Payables and Oracle Treasury have been made obsolete. you will need to link a bank-counterparty in Treasury to the bank branch in Cash Management. Account Number and Check Digit will vary according to the country specific rules. bank branch and bank account maintenance. internal bank accounts for use in Oracle Payables. Oracle Treasury and Oracle Cash Management are centrally defined and maintained in Oracle Cash Management. using Treasury’s Counterparty Profiles window. Configuration Change • There is new user interface in Oracle Cash Management for bank. 13 . • Internal bank accounts are owned by legal entities. Denmark. • Before you can enable bank account usage in Oracle Treasury. Branch Number. Portugal. Belgium. Any operating unit under the same legal entity can be granted access to the same bank account. France. Spain. The key new features in Release 12 are: • • • Centralized Internal Bank Account Model Bank Account Transfers Bank Account Balances and Interest Centralized Internal Bank Account Model Overview In Release 12. The countries that are supported are Austria. however. In Release 12. Norway. Finland. Internal bank account maintenance. • The system supports country specific validations for the bank account and address format. the format and content of the Bank Number. Netherlands.

14 . • Accounting configuration for bank account transfers is done in subledger accounting. Iceland. If you previously had to create two separate bank account records to represent the same real life bank account because it was used by two different operating units. Considerations • During the upgrade. Considerations • Bank account transfers can be created in the system automatically if you have zero-balance accounts (ZBAs) with your banks. Colombia. users can create cash transfers between internal bank accounts. Sweden. Configuration Change • Privileges to create bank account transfers are granted to a user role by legal entity in the Oracle User Management security wizard. and United States. Greece. Italy. you will need to define inter-company accounts in Oracle Advanced Global Intercompany System in order to create proper journal entries. existing internal bank accounts defined in Oracle Payables and Oracle Treasury are migrated one-to-one into the new bank account model in Oracle Cash Management. • Reusable bank account transfer templates can be created for accelerated data entry. settle them through Oracle Payments and account for them using Oracle Subledger Accounting. Germany. • Bank account transfers can be created intra-company (between two bank accounts belonging to the same legal entity) or inter-company (between two bank accounts belonging to two different legal entities). Ireland. Poland. Process Change • New user interface is available for capturing and. separately authorizing bank account transfers.Brazil. Switzerland. Seeded journal line definitions are provided for bank account transfer clearing and un-clearing. Users can define additional journal line definitions for bank account transfer creation and cancelation. after the upgrade you will have the option to disable the duplicate bank account and allow both operating units to use the single bank account. Luxembourg. United Kingdom. • If you plan to create inter-company bank account transfers. This will simplify bank account maintenance and bank reconciliation. Bank Account Transfers Overview In Release 12. • Settlement of bank account transfers is done via Oracle Payments.

are now a part of the internal bank account definition in Cash Management. In addition. both online and via concurrent programs with Oracle BI Publisher. previously defined at the bank account balance level in Oracle Treasury. Bank balance maintenance in Oracle Treasury is disabled. Interest Rounding. • Basis. They can be populated manually or from the bank statement. is replicated between Cash Management and Treasury for bank accounts used in Treasury. 15 . previously defined at the bank account balance level in Treasury. 2-day float. Before bank balance interest can be calculated. Day Count Basis and Interest Includes parameters. Considerations • Interest amount can be calculated for both standalone bank accounts and notional cash pools. See Oracle Cash Management User Guide for more information. 1-day float. Oracle Cash Management provides robust functionality for bank account balance reporting. are now a part of the interest rate schedules in Oracle Cash Management. projected month-todate average. value dated. interest rate schedules have to be defined and assigned to bank accounts. Pricing Model and Limits. bank balance interest can be calculated for bank fee or credit verification. and year-to-date average.Bank Account Balances and Interest Overview In Release 12. • For each bank account and balance date. Configuration Change • There is a new user interface to manage interest rate schedules. however. The data. Process Change • There is new bank balance maintenance user interface in Oracle Cash Management. available. It should be noted that the system does not calculate any of these balance types. Portfolio Code. so that the interest accrual and settlement can still be performed in Treasury. you can keep track of multiple balance types: ledger. • Projected closing bank account balance can be saved alongside actual bank account balances using the new button in the Cash Position window.

then they will be associated to a primary ledger in an accounting setup. and processing data across multiple ledgers and legal entities from a single responsibility. Oracle General Ledger is significantly enhanced to support multi-national companies and shared services centers. o Operating Units: All HR Organizations classified as operating units will be preserved in Release 12. accessing. o Legal Entities: HR Organizations classified as GRE/LEs in Release 11i will be upgraded legal entities in Release 12. The upgrade creates a separate accounting setup for each primary ledger that is upgraded from a set of books. 16 . Legal entities can be assigned to a ledger and balancing segment values can optionally be mapped to legal entities to help identify transactions by legal entity. for example: • Definition of legal entities and associated accounting setup to meet different accounting principles and reporting requirements of multiple countries using different currencies. • Centralized Accounting Setup • Data Access Sets • Ledger / Ledger Set Architecture • Replacement for Disabled Accounts Note: There is also a terminology change between Release 11i and Release 12: Sets of Books are upgraded and renamed to Ledgers – the upgrade retains all 11i settings. charts of accounts and/or calendars. Process Change • Accounting Setup Manager is used to create and maintain accounting setups. • Secondary ledgers and reporting ledgers to create alternate accounting representations automatically. Release 12 highlights for Oracle General Ledger include. Centralized Accounting Setup Overview: In Release 12.Oracle General Ledger In Release 12. You can perform simultaneous accounting for multiple reporting requirements. You can also gain processing efficiencies by setting up. If operating units are assigned to a set of books. the Accounting Setup Manager centralizes the setup and maintenance of common accounting-related setup that is shared across Oracle Financials applications. An accounting setup defines the accounting context for one or more legal entities or other business entities.

o Secondary Ledgers: Multiple-posting set of books (Global Accounting Engine) will upgrade to secondary ledgers. Considerations • Sequencing is determined by the ledger. • Create primary and secondary ledgers and mappings for alternate accounting representations from single transaction (replacement for the Global Accounting Engine Dual Posting solution in Release 11i). Global Accounting Engine. Any reporting currencies assigned to the ledger inherit the subledger accounting method from the source ledger. • You can run the Accounting Setup Manager Pre-Update Diagnosis Report to view your Release 11i setup for Multiple Reporting Currencies. Assets. o Intercompany Accounts: The Release 11i Global Intercompany System (GIS) will be replaced by Advanced Global Intercompany System (AGIS) and GIS features will be migrated to the corresponding features in AGIS. All upgraded. o Subledger Accounting Method: All upgraded ledgers in Release 12 will have a subledger accounting method assigned during the upgrade. For US Federal customers. All upgraded public sector ledgers will have a subledger accounting method assigned called Encumbrance Accrual or Encumbrance Cash. and Receivables. so there is no distinct legal entity of the journal header. This 17 . the settings on the reporting currency will automatically be changed to be synchronized with the source ledger.o Primary Ledger: Most sets of books in Release 11i will become primary ledgers in Release 12. Journal entries may have multiple legal entities (each accounting line may be different). If you modify any of the ledger options for the source ledger after the upgrade. The subledger accounting method enables Oracle General Ledger to integrate with Oracle subledgers using Subledger Accounting. but in Release 12 these options cannot be manually updated for reporting currencies because the reporting currency will inherit its settings from its source ledger. Payables. General Ledger. o Reporting Currencies: Multiple Reporting Currency (MRC) reporting sets of books become reporting currencies in Release 12. The upgrade will preserve the Release 11i settings. Configuration Change • Create legal entities and assign them to accounting setups – either assigned to ledgers or mapped to balancing segment values. • In Release 11i. all upgraded ledgers will have the US Federal Accounting subledger accounting method assigned to them. non-publicsector ledgers will have a subledger accounting method assigned called Standard Accrual or Standard Cash. users could change settings for certain options on a primary set of books independently of its reporting set of books.

balancing segment value or management segment value. or Responsibility level. • (Optional) Manually create data access sets to further control read and write access to ledgers. For example. • Grant read-only user access. you must assign a data access set to the GL: Data Access Set profile option at the Site. This allows you to: • Secure user access to data by ledger. Process Change • Process changes do not directly impact users. The system-generated data access sets created for each ledger and reporting currency provide full read and write access to the ledger and all of its balancing segment values and management segment values. • To associate a data access set to a responsibility. Application. • Data access sets work with cross–validation rules and flexfield value security rules. or specific balancing segment values or management segment values for a ledger or ledger set. you can limit a user's access to a legal entity's data by creating a data access set that secures read and write access to specific balancing segment values or legal entities. but rather control General Ledger security behind the scenes. or read and write access. Configuration Change • The General Ledger Accounting Setup Program automatically creates a data access set for each ledger and reporting currency (journal level or subledger level) assigned to a completed accounting setup. or to specific ledgers. Data Access Sets Overview Data access sets allow users to access multiple ledgers and ledger sets within General Ledger from a single responsibility. 18 .report identifies potential problem areas where you may want to modify your setup in order to take advantage of new Release 12 functionality. Considerations • All ledgers and ledger sets assigned to a data access set must share the same chart of accounts and accounting calendar/period type combination. • Privileges allow you to grant users’ read only or read/write access to specific Balancing segment values within a ledger. or portions of data. If flexfield value security rules are defined that prevent certain responsibilities from accessing certain segment values. those rules are combined with data access set security. if you have a shared accounting setup where multiple legal entities share the same primary ledger. ledger sets. • Security allows you to secure users’ access to data.

FSG report output takes into account data access set security and only shows the data accessible for your responsibility. or read and write access only to some of its balancing segment values and management segment values. They do not have to share the same currency. Ledger sets allow grouping of ledgers with the same chart of accounts and calendar / period type. you will not be able to open and close its accounting periods. This allows you to group the primary or secondary ledgers with their associated reporting currencies to reduce maintenance efforts and streamline processing. 19 . You must have at least read access to the data to view it on a report. The system automatically creates a data access set each time you define a new ledger set. The system generated data access set provides full read and write access to the ledgers in the ledger set. to allow processing across multiple ledgers simultaneously. Ledger sets facilitate the following accounting operations across ledgers: • Open / close periods for multiple ledgers simultaneously • Submit concurrent programs for all ledgers in a ledger set • Cross ledger allocations. Considerations • The same ledger can belong to multiple ledger sets. you must assign the ledger set to the profile option GL: Data Access Set.• • • Use data access sets instead of flexfield value security rules to secure read and write access to balancing segment values and management segment values. Flexfield value security rules are still applicable for the other segments of the accounting flexfield. and ledger sets can contain other ledger sets. If you have read-only access to a ledger. Before you can begin using the ledgers contained in your ledger set for transaction processing. • Assign ledger sets to data access sets for user access and security. recurring journals and year-end closing journals • Currency translation for multiple ledgers simultaneously • Financial reporting (FSGs) across ledgers • Account inquiry across ledgers Process Change • Management of multiple ledgers simultaneously by grouping them into ledger sets Configuration Change • Create ledger sets to group ledgers with the same chart of accounts and calendar / period type. Ledger / Ledger Sets Architecture Overview Sets of books are upgraded to ledgers in Release 12.

If specified.• Use a ledger set to combine the source ledger with its reporting currencies (journal and subledger levels) to open and close periods across all ledgers simultaneously. Process Change • None Configuration Change • Define alternate accounts when creating GL account combinations. the alternate account is used by the Journal Import process and the Create Accounting program in Subledger Accounting to replace the original account combination if it is disabled or end-dated. Replacement for Disabled Accounts Overview Prevent errors & reduce manual intervention in the journal import process by defining a replacement account for disabled accounts. 20 . Both the source ledger and its reporting currency must have the same open periods to prevent problems during posting in the general ledger. See Oracle General Ledger Implementation Guide. Oracle General Ledger Reference Guide and Oracle General Ledger User Guide for more information.

For values to show up in the LOV associated to a default legal context. For example in AR the legal entity derivation hierarchy for transactions is 1. an LE must be associated to the ledger that is assigned to the OU. Oracle E-Business Suite is moving from an implicit definition of legal entities to an explicit one. You will be able to define legal entities to meet different statutory principles and reporting requirements of multiple countries and jurisdictions. Transaction Type 2. Batch Source Assigning a LE to a transaction type or batch source is optional and only the LE’s mapped to the ledger associated with the OU are available to assign. o Legal entity can also be defaulted from the default legal context of an operating unit if no other default exists. the user must explicitly provide it during transaction entry. A highlight of Release 12 is the Legal Entity Configurator which guides the user through the LE creation process. If that ledger has more than one legal entity associated with it. Overview The Legal Entity Configurator allows you to define legal entities to meet statutory principles and reporting requirements of multiple countries or legal jurisdictions. • Additional information: 21 . then a hierarchy of LE derivation is used to default an LE. o If no default legal entity value is found from any other source. The Legal Entity architecture allows you to represent the legal organization structure separately from the operational business structure. This legal entity definition is used in the following business processes: o Payment runs by legal entity o Intercompany (legal entity subsidiaries that trade with each other) o Tax calculations (legal establishments that are registered with a tax authority) o Bank account ownership o Ownership of subledger transactions (eg in Payables or Receivables) o Reporting at the legal entity level Process Change • Subledger transactions are stamped (at header level) with the owning legal entity in addition to an operating unit. • The legal entity is determined as follows: o Each transaction exists within an operating unit and that OU has a ledger which will account the transactions.Oracle Legal Entity Configurator In Release 12.

o How do I define my Legal Entities? o Release 12: Legal Entity Uptake http://www. • Sequencing on transactions is still by ledger. VAT Reporters. journal approval. inventory organizations. • Assign legal entities to intercompany organizations (if using AGIS). Note that balancing segments are required for intercompany accounting between legal entities that share the same ledger.recommended for easier identification of transactions and for reporting purposes. It may be possible to group multiple ledgers into ledger sets for easier processing if need to setup multiple ledgers for legal reasons. • Use Legal Entity Associations to maintain the association between business constructs (operating units. or sequencing).com/release12/release-12-legal-entityuptake/ Configuration Change • Migration of existing data into legal entities (eg GRE/LEs. But after migration there is no link between an HR organization of type 'GRE/LE' and an LE created using the Legal Entity Configurator UIs. • If legal entities differ in any of the 4Cs or require different ledger processing options (like average daily balances. inventory locations etc) and legal constructs (legal entities and establishments). separate primary ledgers are required. calendar. • Configure existing organizations to be legal entities or establishments as appropriate. In Release 12 there is no direct relationship between an operating unit and a legal entity. Considerations • There is no Legal Entity uptake in Oracle General Ledger or Oracle Assets – instead the ledger or balancing segment value is used. HR Organization cannot be used for creating a new LE in Release 12.wordpress.wordpress. Although it is a source for upgraded legal entities. • If your legal entities share the same ledger attributes (such as chart of accounts. An organization of type GRE/LE is used as a source for creating an LE during the R12 upgrade. One way of determining the operating units associated with a 22 • . Brazilian Companies and Global Descriptive Flexfields) • Create legal entities and assign them to accounting setups. it is possible for them to use the same ledger – depending upon your business needs. accounting method).com/2007/11/21/how-do-i-define-mylegal-entities/ o Can I assign an operating unit to 2 legal entities? http://davidhaimes. You can also assign balancing segment values to legal entities that share the same ledger . AP Reporting Entities. not by legal entity.oracleappshub.

legal entity is via the ledger associated with both the legal entity and the operating unit. Use this document to ensure that you leverage all existing resources to learn about. Note that there may not be a unique relationship between a legal entity and an operating unit. Release 12. install. 23 . implement. and use this product in Release 12. See the Oracle Legal Entity Configurator Release 12 Roadmap Document which describes the published information available for Oracle Legal Entity Configurator.

Process Change • New user interface presents a clear distinction between the supplier’s company details and terms and controls for the trading relationship. 24 . accounts etc. The parties are created with a party usage of “supplier” • Procurement and Payables specific attributes like terms and conditions. The information that will be stored in TCA includes supplier name and legal information. It also allows easier cross-product integration. • Supplier Representation in TCA (Trading Community Architecture) • Invoice Lines • Payment Process • AP-AR Netting Supplier Representation in TCA Overview Trading Community Architecture is a data model that allows the deploying company to maintain information about its parties ( was moved to the appropriate product tables (Oracle Payments. • Addresses can be entered and formatted based on country specification. Oracle Payables has made some significant changes in the following areas. sites or locations and their contact information are automatically created in TCA. • Some payment and tax related information is no longer maintained in the supplier sites tables . • Each supplier is associated with a party and each supplier site is associated with a party site. banks etc) and their relationships with the deploying company in a centralized place. address and contact information. Considerations • Existing suppliers. thereby providing a single source of truth. are maintained in the supplier sites tables. • Adding new locations or relationships with additional operating units is streamlined. Purchasing and Receiving can be controlled with the use of Function Security. suppliers. • Managing the attributes specific to particular functional areas such as Oracle Payables. Oracle E-business tax).Oracle Payables In R12. Configuration Change: • When new suppliers are created the system creates a TCA party behind the scenes.

the associated party or party site does not change. as well as enhancing the matching function. The new invoice structure also more accurately models Oracle Procurements PO shipment. Supplier open interface processes are enhanced to support the creation of TCA entities while importing suppliers. a new supplier site must be created. Invoice Lines Overview The addition of invoice lines allows Oracle Payables to better model the paper or electronic business document by representing the goods or services.• • • • • • • • Existing tables that hold the supplier information are moved to a new set of tables (AP_SUPPLIERS). users can enter one or more distributions for every invoice line. • Tax. a new party site will also be created. The contacts are always transferred to the merged supplier site specified in the supplier merge form. supplier merge should be performed before initiating the party merge. Employees that were defined as suppliers in prior releases will not be migrated. freight. Supplier or supplier site merge does not affect contacts. 25 . • Freight/miscellaneous lines created automatically via request to the matching process from the matching windows do not automatically generate distributions at line creation time. when a supplier site is “copied” from one supplier to a different supplier. The creation of supplier bank accounts is also supported from the supplier open interface. • Redesigned matching windows for PO/Receipt matching can be invoked from the Invoice Workbench. freight and other charges. as their information would already exist in TCA. as well as tax. During the supplier merge process. Hence. Invoice lines that were generated by matching will generate distributions at the time of match. • New windows support price/quantity/invoice corrections. New views. and miscellaneous type invoice lines can be prorated to all item lines on an invoice. • Users can enter freight at the invoice header and then prorate it across all item lines on the invoice. allowing for improved allocation of charges. When a supplier or supplier site is merged. In a separate window. Process Change • The new Invoice Workbench now contains a multi-record block to represent the invoice lines. When merging suppliers. based on the old supplier table names have been added for backward compatibility.

In this case. The following are some of the new enhancements that were made in this release: • More robust and flexible payment processing engine • Improved visibility into payment processing via the centralized Payments dashboard • Improved pay run automation • Improved pay run management tools: o Enhanced cash management report o Comprehensive selected invoice information o Improved online inquiry of selected invoices • Process payments for multiple operating units from single responsibility Process Change • A new Selected Invoices page displays summary and detail information used to view and analyze invoices selected in a pay run. 26 . To invoke this feature. the invoice lines are automatically created. users can specify the deferred accounting period as a parameter for each individual invoice line. when the accounting records are created for this invoice line and distribution. a series of accounting records will be generated reflecting the fact that the invoice expense is first recorded in an accrual account then moved into expense account periodically. or remove from a pay run. • With the new invoice lines model. • In prior releases. the allocations were managed by a charge allocation table which is now obsolete. • Charge (tax/freight/miscellaneous) distributions are created at the maximum level of detail to represent detailed allocation information. the R12 multi-period accounting is realized at the invoice line level. • The standard upgrade process creates one invoice line for every distribution existing in the 11i Payables distribution table. modify. • Powerful search tools improve online inquiry to invoices that you may want to review. start date and number of periods. users check the “Deferred Option” box and specify the deferred period type.Configuration Change • Users can also do a quick match by entering just the PO number on the invoice header. Payment Process Enhancements Overview The payment process has been significantly enhanced in Release 12. • Exchange rate variance (ERV) and invoice price variance (IPV) amounts become separate distributions in the upgrade process and so. are no longer part of the item distributions. Later on. Once Subledger Accounting is configured for multiperiod accounting. Considerations • No new setup steps are required for using Invoice Lines.

• IMPORTANT: All custom payment formats must be migrated to XML in order to work in R12. it has been removed from all reports. the user can see the final amounts of each payment and can choose to drop any payments. It can be used for reviewing the invoices selected in a pay run. However. payments with errors can be rejected. the process may be stopped for review. Wire. or all payments may be rejected in the request if errors exist. If payment batch sets were used as a workaround for doing multi-currency pay runs in 11i then. Here. and Clearing). Usage rules and validations can be set up for a payment method. A Payment Dashboard empowers your payment manager to monitor all current pay run processing and gives them visibility to payment processes that require attention. Configuration Change • All payment related setup has now been moved to the new Oracle Payments module. The second point is after the scheduled payments are built into payments. review invoice selection criteria. Refer to the Oracle Payments User guide. determine immediate cash requirements for a pay run etc. Oracle Payables seeded four payment method types (Check. add or remove scheduled payments or change payment and discount amounts. • In prior releases. Pay runs can be stopped at two points. At this point. In addition a single payment run can process multiple banks that includes both electronic and printed payments The Payment Process Request template enables you to predefine invoice selection criteria. • Check Payments and the Electronic Payments document categories have been retained in Release 12. customers can setup their own payment methods Considerations • Scheduled Payment Selection report cannot be run for historical data. Users can choose to pause after the invoices are selected. Electronic. • Disbursement type has been made obsolete and hence. Payables no longer supports the Wire Payments and Clearing Payments document categories. users can review selected payments. For example. 27 . Scheduled Payment Selection report replaces many portions of the Preliminary Payment register report. Validation errors during the payment build process are automatically handled based on the options that are specified on the payment process request. In Release 12. • Custom document categories for payments will not be upgraded.• • • • • • • • Users can now view invoices that were not selected due to various reasons (not validated/approved). consider combining those pay runs into a single pay run. thereby simplifying payment processing.

Configuration Change • Both customers and suppliers must be setup as a trading partner in TCA. • If the option to include trading partner approval is selected. • Optionally. if the (supplier?) site information is left blank. o Establish a paying relationship for the customers in Accounts Receivable. netting agreement. • No netting batch information will be upgraded. o Create a netting bank account. In this process users can review. It also supports foreign currency netting. • Here are some of the additional steps that are required: o Create a netting agreement. Users could also run the proposed AP/AR netting report. • Submit the netting batch and view the final netting report. In the header portion of the screen users will be able to see the total dollar amounts of the AP and AR transactions selected as well as the proposed netting amount.AP-AR Netting Overview The AP-AR Netting feature allows you to offset balances in both Oracle Payables and Oracle Receivables to reduce the outstanding debt owed either from an internal company or from a customer. • Query the netting batch and view the proposed AP/AR netting amounts online. o Associate the bank account used in the netting agreement with the AP/AR netting receipt class. only one approver can be selected. submit the netting batch. • When creating a netting agreement. Considerations • An internal dummy bank account will be seeded which will process receipts generated in Oracle Receivables. then the system includes all the sites for the trading partner. Accounting for netting is handled in the same way as if it had been closed in the subledgers. • Once the batch has been set up. users can review the netting batch. o Create a netting control account in General Ledger as well as exchange rate types if using multi-currency netting. remove or add transactions before submitting it. It can include various parameters like operating unit. 28 . The approver name list of values is derived from the customer contact information. Users can view the Receivables and Payables transactions that were selected for possible netting. This feature allows you to optionally give the trading partner the opportunity to review and approve transactions before they are posted. settlement date etc. Process Change • A netting batch needs to be created using the Receivables responsibility.

Agreement name will be created using customer id and customer name. Users must change this to valid values. All in-progress netting batches should be closed or completed before upgrade. Netting upgrade uses dummy values for certain mandatory information not found in 11i setup.• • • Netting agreements will be created for every existing customer and supplier relationship that is migrated. Transaction data residing in interface tables in 11i is not migrated to Release 12. 29 . Users must review the migrated netting agreement setup to add or correct upgraded information. See Oracle Payables Implementation Guide and Oracle Payables User Guide for more information.

and secure transmission of payments to financial institutions and payment systems. The major features within funds disbursement are: • Funds Disbursement Dashboard that enables payment administrators to manage every aspect of the process across multiple organizations from a central location in the application. • • • 30 .. aggregation. Remittance advice reporting that notifies a payee of the remittance detail when a payment is made. robust and centralized engine for disbursing and receiving payments. The key components of Oracle Payments are: • Funds Disbursement • Funds Capture Funds Disbursement Overview: The funds disbursement features delivered in Oracle Payments simplifies user procedures for managing complex payment processes that span multiple payment methods. From receipt remittance through Receivables to centralized receipt remittance. currencies. organizations and bank accounts. formatting. From bank accounts stored in multiple products to centralized bank account setup. Oracle Payments has changed payment processing within Oracle products: • • • • • • From proprietary Oracle reporting technology to standardized formatting using XML. From credit card information stored in multiple product entities to a centralized credit card entity within Payments. From single operating unit restrictions to cross-operating unit transactions. From payments transmitted by external systems to native transmission capabilities.Oracle Payments Oracle Payments is a new product introduced in Release 12 that provides a configurable. Country-specific payment formats and reporting that meet global payment requirements. formats. End-to-end electronic payment processing that includes validation.

Process Change: • In Release 12. o Payment process aggregates payments from multiple document selections and submissions into payment instruction files. and Oracle Globalizations. Configuration Change: • All payment related setup has been centralized within Oracle Payments. Oracle Payables. These setup rules are held in a key entity called the Payment Process Profile. • Future Dated Payments are renamed to Bills Payable in release 12. Considerations: • Both the Automatic Payment Programs and Payment Formats (AP entities) are obsolete in release 12. • The upgrade uses various data from Oracle Payables to create the new Payment Process Profiles. • Oracle Payments’ secure electronic payment file and payment message transmission and transmission result processing replaces previously existing electronic transmission features in Oracle iPayment. See Oracle Payments Implementation Guide for more detailed information. and handles additional processing. • All masking of credit cards. Setup has moved from the payment document on an internal bank account to the payment method in Oracle Payments. 31 . formats the files. debit cards and bank accounts is centrally controlled. o Payment Build process first groups documents according to various rules. The upgrade seeds payment methods that existed in Oracle Payables and globalizations. such as printing and transmission. o Payment System: a payment system holds information about the third party involved in processing payments. setup entities related to payment formats within Oracle Payables are obsolete as they are effectively replaced by the new Oracle Payments setup. such as the payment method and currency. • Oracle Payments offers flexible setup to configure funds disbursement processing. Payment Methods are now user definable. Also. Some of the key areas of impact are: o Payment Methods: each document to be paid requires a payment method to indicate how it should be handled in the funds disbursement process. Oracle Payments segregates the process into two major functions: Payment Build process and the Payment process. o Processing Rules: the payment method on a document links it to processing rules configured in Oracle Payments.

electronic funds transfers from bank accounts. and Concord EFS. process refunds to credit cards. Other payment systems.Funds Capture Overview Funds capture supports the processes to electronically receive funds owed deploying companies by debtors. refunds to credit cards. EFT online validation checks whether a bank account exists and that the account is not flagged fraudulent. Routing Rules. • Process Change • Oracle Payments has consolidated notification letters from Oracle Globalizations into an Oracle XML Publisher format. such as VeriSign. Supports authorization and settlement of funds against credit cards and PINless debit cards. such as customers. Please refer to Oracle Payments Implementation Guide for more details. • Oracle Payments does not support risk management for PINless debit card or bank account transfer transactions. • Credit card security setup can be easily completed using the Oracle Payments Payment Administrator responsibility. perform electronic funds transfers from bank accounts. • Oracle Receivables retains the functionality of lockbox processing and electronic upload of remittance messages. First Data Merchant Services. but it is important for you to understand the new setup and process so you can successfully test the migrated information Considerations • EFT online validation is only offered for United States ACH and not for all payment systems. and formatting of bills receivable. • The required setup entities for bank account transfer processing are upgraded for you. or Funds Capture Processing Rules. Paymentech. configurable funds capture processing can be setup by Payee. EFT online validation does not reserve funds or check if the account has sufficient funds. offer their own out-of-the-box integrations with Oracle Payments. Supports out-of-the-box integration with leading third party payment systems such as Citibank. Supports multiple payment processing systems operating simultaneously for funds capture transactions. and to format bills receivable. 32 . Configuration Change • Centralized. The major features within funds capture are: • • • Funds Capture Dashboard provides payment administrators an overview of the payment process status. Oracle Payments works with AR to authorize and capture funds against credit cards.

33 .1 for more details in the Functional Upgrade Impacts Document for Oracle Payments (FINANCIALS). See Oracle Payments Implementation Guide and Oracle Payments User Guide for more information. Also see Metalink Note733537.• Oracle Payments does not automatically reauthorize settlements that are rejected due to expired authorizations.

customer creditworthiness.Oracle Receivables Oracle Receivables streamlines the invoice. receipt and customer deduction processes while simultaneously improving cash flow. In Release 12. significant changes were made in the following areas: • Revenue Management • Line Level Cash Application • Redesigned Customer User Interface • Bill Presentment Architecture Revenue Management Enhancements Overview Enhancements in the Revenue Management area include the ability to distribute revenue in a more granular fashion which includes full and partial periods. • New Cost of Goods Sold (COGS) and Revenue Matching feature synchronizes the recognition of revenue with recognition of associated COGS. o Ability to create user defined revenue contingency definitions seeded examples include: cancellation. • Enhanced event-based revenue management allows users to define revenue deferral reasons and corresponding revenue recognition events specific to their business practices. Additionally. increasing efficiency and optimizing customer relationships. • Seeded revenue assignment rules have been replaced by a new window that enables the user to create process specific revenue assignment rules. etc. • New Contingency tab offers the ability to review and manually manage contingencies from the Revenue Adjustment Manager (RAM) wizard. organizations may create their own revenue deferral reasons to ensure revenue is recognized in accordance with applicable revenue recognition policies. Configuration Change • Creation of new accounting rules allows for revenue recognition that meets accounting standards and contractual start and end dates. o Example: Able to create an accounting rule for revenue that will distribute revenue across identified accounting periods that can include a partial period (meaning the period does not start or end on the first or 34 . • New Revenue Manager responsibility that provides the revenue analyst a central location to set up and maintain revenue policies and rule assignments. Process Change • New configurable accounting rules to determine the treatment of revenue allocations for partial periods.

Considerations • Oracle costing calls the new Receivables API (AR_match_rev_cogs_grp. During a partial period. New Application Programming Interface (API) automates revenue & COGS matching. the Contingency Defaulting API runs again and can default additional 35 . It only provides the ability to override the accounts defaulted via auto-accounting. o In R12.populate_cst_tables) that triggers earning and unearning of COGS when revenue is recognized or unearned. GL Date Period Days in Period Daily Revenue Rate.last day of the accounting period). The table below provides an example of how the new accounting rules would prorate revenue accordingly. User will assign a contingency at order entry time based on the contingency defaulting API from Receivables. • No longer necessary to create manual journal entries for revenue & COGS matching. All Periods 180 280 310 130 January 14 February 14 March 14 April 13 • January February March April 18 28 31 13 Daily Revenue Rate.Receivables will assign explicit acceptance as the contingency to the transaction line. • Uptake of SLA does not impact timing and amounts for revenue recognition. Order Management (OM) provides this capability for invoicing & customer acceptance contingencies. Partial Periods 180 295 295 130 Fixed Schedule Variable Schedule 225 225 225 225 180 240 240 240 • Ability to create user defined Revenue Assignment Rules: o Example: New Rule for Acceptance: Matching Criteria (must choose from a seeded choice list): Bill to Customer Condition: equals ABC Customer Revenue Contingency: Explicit Acceptance Result: If a transaction line with Bill to Customer of ABC Customer meets the criteria of this rule -. and the revenue will be deferred until customer acceptance is received. the revenue amount will be prorated based upon the number of days in the period. • COGS and Revenue Matching report has been retired. o Once this order is imported into Receivables from Order Management. • Provides the capability to default contingencies from feeder systems.

• Receipts can be applied against: o one or more transaction lines o all transaction lines o a specific group of transaction lines o a specific transaction line type such as tax. debit memos and chargebacks with line details. o However. • Line Level Cash Application Overview With the introduction of line level cash application. The system will check to see if this revenue policy is populated during the initial set up. 36 . Process Change • New cash application tree to choose the appropriate application level. Un-apply and re-apply can be done against an entire transaction or to a specific transaction line. • Cannot apply against invoices with installments. o Only impacts those systems interfacing to Receivables through AutoInvoice or Invoice API.contingencies but will not over-ride the invoicing and/or customer acceptance contingency created during initial order entry. • Receipts cannot be applied at the line level against invoices migrated from Release 11i. o The revenue policy data (which is populated for certain customers) will automatically show up in the new revenue policy window. • Available only for invoices. as line level balances were not stored prior to R12. receipts can be applied against specific transaction items such as individual lines. Upgrade script will convert the contingency ID from prior releases to the new contingency removal event code. late charges or any combination thereof • Ability to un-apply and re-apply receipts. group of lines or tax or freight buckets. freight. • The Revenue Policy System Option available in 11i will be obsolete in R12. Configuration Change None Considerations • Line level applications apply to manual cash application only. refund contingency and extended term contingency for all invoices (that either violate the policy or match the credit worthiness criteria). automated line level application is available via lockbox. o The system will automatically apply the credit worthiness contingency. o SLA can only be used to override the accounts created via autoaccounting. o No User Interface impacts.

DQM allows the user to perform advanced searches for parties and customer accounts with user defined criteria. • By using TCA components. Considerations • The Customer Standard menu item will launch the new HTML customer form. • Display of data has been enhanced to represent the TCA model. Customer Standard User Interface (UI) Redesign Overview The new HTML based user interface provides a streamlined and intuitive customer data management flow. • Ability to classify customers based on industry. Data quality management tools allow users to maintain the integrity of customer data. size. o Ability to set flag on Batch Source window to not store balances at line level in 12. customer account site. and a business purpose for the customer account site. it can prevent duplicate entries by determining if the customer that is being created or updated is a potential duplicate. location. and Customers Quick View). 37 .1. • Tight integration with TCA allows users to take advantage of the DQM (Data Quality Management) feature. Customers Quick. In addition to the advanced search feature. Process Change • Provides functionality to create a new customer. business volume and payment cycles. • No data is affected. Balances are now stored at the line level regardless of application. Customers Standard View. o The pages are built using TCA CPUI (Common Party User Interface) components. modify the AR profile option “Always Default Transaction Balance” for Applications profile option. the cost of maintenance is lowered. Customers Summary. credit worthiness.• • • Does not use application rule sets. customer account. If necessary. Configuration Change • The new Customer Standard UI replaces the five functions that used to exist in prior releases (Customers Standard.

Enhancements were made to the following features: • Balance Forward Bill Presentment o More appealing and easier to modify bill layouts o Ability to view printed bill exactly as the customer sees it o Rules engine provides the ability to select from unlimited formats • Enhanced Template Assignment o New attributes provide more flexibility in how templates are assigned to customers • Attachment Printing o Ability to print PDF attachments for specified document categories Process Change • Balance Forward Bill Presentment: o Key set up steps include: Register views Select template items Select assignment attributes Create hyperlinks o Utilize balance forward data source for template assignment.g. o Two seeded assignment rules: Default rule for balance forward detail template Default rule for balance forward summary template o Must run the “Generate Balance Forward Bills” program • Enhanced Template Assignment o Templates can now automatically be assigned by: Any attribute in the invoice header Seeded attributes like Batch Source. Oracle Receivables Implementation Guide and Oracle Receivables User Guide for more information. Projects interface attributes). Transaction Type or Context Reference Supplementary data sources..Bill Presentment Architecture Overview Bill Presentment Architecture (BPA) allows you to retrieve billing data from multiple sources. including those external to Oracle Receivables. • New profile option must be set to take advantage of printing attachments for printed bills o AR:BPA Print Attachment Document Category o Applies to both internal & external templates Considerations • Balance Forward Billing replaces Consolidated Billing. See Oracle Receivables Reference Guide. like header and footer flexfields (e. 38 .

users can copy and modify the seeded definitions and their assignments. This centralized accounting setup provides greater flexibility as well as supports more simplified and standardized accounting rule creation and maintenance. Process Change: • In R11i and prior releases. • With Release 12. NOTE: Please refer to the Oracle Subledger Accounting Implementation Guide for more detailed information and definitions of the terminology used herein. Project Accounting) within SLA. The SLA upgrade involves migrating existing accounting data between 11i and Release 12 to ensure a continuous business operation. with a common posting process to Oracle General Ledger. accounting for all subledger applications is unified under SLA. Oracle Subledger Accounting has changed accounting within Oracle applications: • From accounting setups within each Oracle module to a unified accounting definition in Subledger Accounting. Assets. The intuitive user interface does not require users to know any programming language or to have developer skills. • Seeded application accounting definitions are provided for all Oracle subledgers. accounting for subledger applications existed within the individual applications. 39 .Oracle Subledger Accounting Oracle Subledger Accounting (SLA) provides a common accounting engine that replaces the existing accounting processes in the subledger applications. Payables. with a common posting process to Oracle General Ledger. • From separate Global Accounting Engine functionality to a common standard for all Oracle subledgers (Receivables. • If specific requirements are not met by startup accounting definitions. The key upgrade areas impacted by Oracle Subledger Accounting are: • Accounting Rules • Transaction account builder • Standard reports Accounting Rules Overview: Subledger accounting rules define how journal entries can be created from subledger transactions for both the primary and secondary ledgers.

and Journal Line Definitions for Actual Accounting. Federal Accounting. In 11i.Configuration Change: • In Release 12. In R12. determine whether to enter manual subledger adjusting journals exclusively in SLA or GL for easier reconciliation. • Account generator mechanisms that existed in 11i still exist and provide the same functionality in R12. then the SLA and GL journal entries will not match the account stored on the subledger transaction distribution. Implementation teams now have the option to override. and Accounting Methods Builder (AMB). and Oracle Project Encumbrance Accounting. 40 . Journal Descriptions. • Accounting Class Codes: In R12. Deploying companies can seed their own Accounting Class codes and assign them to the different journal lines. the accounting journal line types are fixed and can be only modified by development. the Accounting Class code is a lookup type owned by Subledger Accounting. • Review existing manual or adjustment journal entries to see if accounting rules can be configured to generate journals that eliminate the need for manual or adjustment journals. • Accounts that appear on the distributions (either manually entered or generated by account generator mechanisms) of subledger transactions such as Payables or Receivables invoices are not necessarily the final accounts that appear in the SLA and GL journal entries. Users may configure SLA accounting rules to further modify the default account by overriding the values for any of the segments in the account combination. In Release 12. • Test effective-dated changes to accounting rules and verify the impact before the change is implemented. If users define SLA rules to change the default account. • As a best practice. Encumbrance Accounting. each subledger application will maintain its existing accounting rules. the Accounting Class code is similar to the accounting journal line types in 11i. will work in conjunction with those rules. • Application Accounting Definitions and Journal Entry Setup: The seed data includes all the Accounting Derivation rules. the accounts on the transaction distributions become the default accounts used by SLA accounting rules. delivered within Subledger Accounting. Considerations • Standardize your accounting policies by defining a common chart of accounts and accounting method across the enterprise before creating new accounting rules or replicating your existing rules within the SLA model. modify or use the accounting defined within the subledger applications as the accounting to be transferred to GL.

TAB is intended only for applications that allow users to modify the default accounts for a transaction before it is committed. Standard Reports Overview Subledger Accounting owns tables that store all the subledger journal entries and their associated accounting information. the results are stored in subledger accounting tables. Process Change • Advanced Global Intercompany System (AGIS) has adopted TAB in Release 12 o Additional setup in AGIS is required to use TAB to define default accounting for transactions. This information may then be used by analytical applications for inquiries and/or reporting. while transaction account types and transaction account definitions are introduced by Transaction Account Builder. • Implementation teams may use the seeded transaction account definitions. and extraction. • Dynamic insertion can be enabled for the chart of accounts so that if the combination does not exist. They may also create their own definitions either by copying and modifying seeded definitions. or by creating new ones from scratch. Considerations • If the application does not allow modification of the default accounts for a transaction before it is accounted. Regardless of which product is used to create accounting. • A common data model is designed for efficient inquiry. Configuration Change • Sources and account derivation rules are shared with Accounting Methods Builder (AMB). they may need to create new account derivation rules. • If implementation teams decide to create new transaction account definitions. These rules can be derived by accounting flexfield or by segment and may have a chart of accounts associated with them.Transaction Account Builder (TAB) Overview Transaction Account Builder (TAB) provides a flexible mechanism to derive default accounts for subledger transactions that is fully integrated with Subledger Accounting (SLA). a new code combination can be created. o Distributed accounts must be defined for each ledger and are generated as defined in Subledger Accounting Transaction Account Builder (SLA TAB). 41 . the implementation team must use AMB. reporting.

Implementers need to create their own definitions for any new liability accounts they have created. RTF. The upgrade process will create Open Account Balance Listing Definitions for each existing liability account per ledger. Process Change • Oracle BI Publisher is a key reporting tool in Release 12 that enables business users to create financials reports with familiar desktop products like Microsoft Word and Excel. greater efficiency. we’ve made it easier to locate and use reports by classifying them into three main categories: Journal Reporting Trading Partner Reporting Account Analysis Reporting Considerations • Analyze custom reports to map out a plan/approach to migrate existing reports to Oracle BI Publisher. and improved accuracy and reliability for financial reporting. 42 . It can also publish reports via printer. or posting to websites or portals. • BI Publisher can save reports in many different formats including XML. See Oracle Subledger Accounting Implementation Guide for more detailed information. PDF. • With Release 12. • Custom reports may need to be modified to extract data from SLA tables rather than subledger distribution tables.• Oracle BI Publisher reports and templates offer immediate cost savings. and Excel. you must create the Open Account Balance Listing Definition. • Open Account Balance Listing Definitions: In R12. e-mail. to run the Trial Balance Report for a particular liability account.

• External subscription model where the Configuration Owner may choose to subscribe to the services of a Tax Service Provider for a given tax regime.Oracle E-Business Tax E-Business Tax is a new product introduced in Release 12 that provides a single point solution for managing transaction tax requirements across several E-Business Suite products. o Global Configuration Owner (GCO): enterprise level tax configuration owner. Alternatively. This is the entity that owns tax setup data that any configuration owner within the enterprise can subscribe to. Process change • Each entity within an organization can subscribe and use a single common configuration source for all transactions. 43 . There are two subscription options in Release 12: • Internal (or multi-entity) subscription model to share tax setup across entities. with overriding capabilities at the Legal Entity and Operating Unit levels. The internal subscription model is based on several key concepts: o Configuration Owner: any Legal Entity or Operating Unit that creates and maintains specific tax setup data. that entity can use the common configuration source with overridden tax set up specifically required to meet its own tax regulations. o Option to override GCO tax setup data: a subscribing entity can override the tax setup data to handle specific requirements applicable to that entity only. E-Business Tax has changed transaction tax handling within Oracle products: • from fixed rules to user configurable rules • from single product setup to cross product setup • from single organization setup to cross organization setup • from multiple engines to single engine (see caveats in sections below) • from multiple repositories to unique repository (see caveats in sections below) The key components of E-Business Tax are: • Configuration Options and Provider Service Subscriptions • Tax Configuration Manager • Tax Determination Services • Tax Reporting • Tax Simulator Configuration Options and Provider Service Subscriptions Overview The configuration subscription model delivered by E-Business Tax optimizes tax setup and ensures tax rules are consistently applied within the enterprise.

using standard API’s. The enforcement of adequate tax rules across Legal Entities or Operating Units within your company ensures that tax is correctly applied to all transactions. See Oracle E-Business Tax Implementation Guide and Oracle E-Business Tax: Vertex Q-Series and Taxware Sales/Use Tax System Implementation Guide Configuration change • If all entities in your enterprise are subject to the same tax regulations you can setup tax only once. • Testing of standard API’s to integrate with external tax providers in the Order-ToCash and Procure-To-Pay business cycles is not completed at the date of writing this document: o Order-To-Cash testing underway. and have all your entities subscribing that common tax setup. Legal entities in each country will be subject to local tax regulations which will impact the entire company. Tax setup is uniformly created in a common User Interface for all Oracle products. under the Global Configuration Owner. fiscal classifications. See considerations below. the option to integrate with tax service providers was restricted to Vertex and Taxware. In Release 12 that restriction no longer exists: you can choose to integrate with your preferred tax partner. • You can optionally subscribe services of external providers to handle tax configuration and tax calculation. 44 . In Release 12 there is an explicit association between tax setup and Legal Entities or Operating Units. Tax regulations are defined only once and applied consistently across products.• In Release 11i. tax rules. • If any entity within your enterprise requires special tax handling that differs from the common tax setup. tax jurisdictions. using Vertex O Series as a pilot. Considerations • Integration with external tax providers is currently available in the Order-To-Cash business cycle only and restricted to Taxware and Vertex’s product versions that were supported in Release 11i. o Procure-To-Pay testing not scheduled. often times in a shared service model. Tax Configuration Manager Overview The Tax Configuration Manager component is responsible for creating and maintaining the structural foundation of Tax such as taxes. tax rates. This is particularly important when you operate in multiple countries with disparate tax regulations. you can either override the common tax setup that is owned by the GCO or create and maintain specific tax setup for that entity that becomes a Configuration Owner itself.

There is a clear segregation of User Interface flows for tax managers and for general business users. Considerations • Cannot update tax exclusiveness at invoice header or invoice line levels. You no longer need to enter tax setup in multiple product. sometimes ambiguous. If your company expands business to new countries with different tax requirements. See Oracle EBusiness Tax Implementation Guide. See Metalink note 463001. • Tax setup creation and maintenance is done in new User Interfaces. you could define Legal Entities in multiple. That premise has determined the creation of tax configuration flows totally dedicated to the tax manager. you can easily scale the existing tax setup to meet those new requirements.Legal and business tax regulations are mapped to flexible tax rules and other components of E-Business Tax. o Use the Tax Configuration Library with modifications: you can take advantage of this predefined set of tax configuration data that may be used as sample data to guide and expedite the E-Business Tax implementation process. • Central setup and maintenance is now performed in new User Interfaces dedicated to your tax personnel. o Integrate with tax content providers. See Configuration Options and Provider Service Subscription above.1. • The Tax Rules flow makes it easy for you to change existing tax rules and tax rates and/or create new rules and rates. See Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12. 45 . like Oracle Payable or Oracle Receivables. without modifying the product. Configuration change • Prior to Release 12. ways. Once you complete the transition to E-Business Tax processes. • You have multiple options for defining tax setup in Release 12: o Migrate tax setup from Release 11i. With the new Legal Entity model you now have to explicitly define your legal entities as well as the association with the appropriate tax setup. you can disable the Release 11i migrated solution with no loss of service. and gradually adopt the E-Business Tax setup and tax determination processes according to your needs. o Manually enter your tax setup. • Instead of creating tax setup in various products. when you have the time or the need to adopt the new capabilities of E-Business Tax. Tax configuration is central to the tax role. See bug 6772098. you create a single tax setup that is applied consistently across products. • You have the option to run taxes in Release 12 similarly to how you did it in Release 11i and gradually migrate to the new E-Business Tax model. Process Change • There is a unique tax setup flow and common user interfaces across products.

Only your authorized users can override calculated tax amounts. Oracle Consigned Inventory. Oracle Services Contracts. Process Change • Instead of disparate tax services provided by multiple products. Tax Determination Services Overview The Tax Determination Services component calculates transaction taxes based on transaction details and tax setup information. Oracle Order Management.• • • There is no support for tax point date in E-Business Tax. Oracle Trade Management.Oracle General Ledger Each product only needs to pass the required information to E-Business Tax to get the right tax determination and calculation. Oracle Internet Expenses and Oracle Payables o Order to Cash . • The central tax engine uses a common set of tax rules applicable to all your business entities. This component carries the following benefits: • Automation of tax processing through a central tax engine.Oracle Order Capture/iStore/Quoting.Oracle Purchasing. with the exception of withholding taxes and those taxes handled by the Latin Tax Engine solution. • Covers standard Procure-To-Pay and Order-To-Cash transaction taxes.Oracle Inter-company invoicing o General Ledger . Oracle Internet Procurement. It is not integrated with the E-Business Tax internal subscription model. Tax reporting configuration is associated with a Legal Entity and Tax Registration Number. • E-Business Tax replaces the following Release 11i tax solutions: o Procure to Pay – Automatic Tax Calculation and Brazilian Payables and Purchasing o Order to Cash – Global Tax Engine o General Ledger – General Ledger Automatic Tax Calculation • Your users no longer have to enter the correct tax code at transaction entry point: E-Business Tax determines the applicable tax or taxes for each transaction and automatically calculates the tax amount(s). Ensures the accuracy of tax calculation for all tax regimes your company is subject to. Tax reporting configuration not shareable across Legal Entities or Operating Units. Oracle Project Accounting and Oracle Receivables o Inter-company invoicing . It improves the operation efficiency of your company and reduces errors. 46 . the central tax engine uniformly delivers automated tax services through a single application interface to: o Procure to Pay .

Payables Extended Withholdings (Latin America). Indian transaction taxes and EMEA VAT Reporting. tax reporting and auditing take advantage of the XML Publisher reporting tool that facilitates output manipulation. • Clerks whose main responsibility is to correctly enter transactions in the system can rely on the product to get the correct taxes applied to transactions.) and transactional data. Croatia and Israel. Tax reporting was largely enhanced with features initially requested by EMEA countries. • New reports delivered for Austria. Process Change • Reference data and transactional data are now available from a central Tax Repository. Brazilian Withholding Tax Calendar. fiscal classifications. It’s extremely easy to customize existing templates or to create new ones using XML Publisher. You no longer need to search for tax information in multiple products. Considerations • Tax functionality not migrated to the E-Business Tax model. Tax Reporting Overview Tax Reporting and auditing rely on a single tax repository that stores both reference data (taxes. • Tax determination and tax calculation are fully automated. In Release 12 you can run all your tax reports by legal entity. which can be used by countries in other regions with the same type of requirements. tax rules. based on tax setup previously defined by the tax manager.Configuration change • There are distinct flows for tax setup and for operational activities such as entering transactions. • Enhanced tax reporting configuration with dedicated User Interfaces where you define all reporting rules for your Reporting Entities. In addition to the single tax repository. Latin Tax Engine (Receivables). tax reporting was a lot compromised by how you implemented your legal entities. • Business users can easily update templates delivered in the core product or create new templates without changing code. tax rates. 47 . etc. The majority of tax reports are converted to XML Publisher. They no longer have to enter the relevant tax codes for each transaction because EBusiness Tax does that for them. tax jurisdictions. Prior to Release 12. retained in Release 12: Payables withholding taxes. reducing the risk of human errors.

You can evaluate results.. stocks. services. • Reporting based on a user definable tax reporting date. etc. It allows you to verify if the tax configuration provides the expected results on your entered transactions. such as a new tax rate. This is a valuable tool for tax managers who can use this interface to verify the tax configuration and to simulate the effect of the introduction of a new rule or incremental setup data. some of the EMEA countries have to define multiple tax rate codes with the same tax rate. • Tax reporting based on tax calendar that can different from the accounting calendar. update the rules if required. assets. Configuration change • Ability to run tax reports by Legal Entity and Tax Registration Number. Considerations • Core tax reports run by Invoice Date only. and re run the simulation with same set of transactions. • Preliminary versions of tax reports to be run in order to support corrections and reallocations prior to finalizing the reports (declarations) to tax authorities • Final reporting • Close tax periods after final reporting to prevent updating or reporting twice transactions already finally reported. • Tax calendars. preliminary and final reporting. and view the results of the corresponding tax calculation.See Oracle E-Business Tax Reporting Guide and Oracle Financials for Europe User Guide. such as a Purchase or Sales Invoice. domestic. export. alternative tax dates. goods. purchases. • Definition of reporting categories to report transactions by different business angles: sales. tax reporting categories (or tax boxes) only used by EMEA VAT Reports. import. • In order to meet reporting requirements. Tax Simulator Overview Tax Simulator allows you to enter transactions. however. In Release 12 you can still run tax reports by Balancing Segment Value. 48 . Oracle expects you to gradually move to tax reporting by legal entity and tax registration number. • Tax Repository does not store General Ledger tax journals. • A few tax reports were not converted to XML Publisher (still available in rdf). It also gives you the capability to drill down to the rules that were used in the simulation and to the rules that were not used. • Multiple Reporting Currencies support not available in all tax reports.

The Tax Simulator has dedicated User Interfaces where you can test all the tax setup before going live. Configuration change • You can test tax setup in Purchase or Sales invoices using the new User Interfaces of the Tax Simulator. • Simulation is restricted to the behavior of tax rules. Considerations • Requires manual entry of transactions for simulation – no option for uploading. See Oracle E-Business Tax Implementation Guide. and Oracle E-Business Tax: Vertex Q-Series and Taxware Sales/Use Tax System Implementation Guide for more detailed information. It does not allow simulation of tax amounts to be paid or collected. 49 . Oracle E-Business Tax User Guide. See Oracle E-Business Tax User Guide.Process Change • There is no predecessor for Tax Simulator before Release 12.